Fiat reports damage at Kurla plant due to rains

THE factory of Fiat India Pvt Ltd, located at Kurla in the city, has suffered damage during the recent heavy rains and flooding.

Damage assessment is currently on and only when it is complete would the company be in a position to say when the plant would be functional, Fiat India said in a statement.

"Insurance will be claimed once the assessment has been completed; however, it will run into crores,'' it said. There has been no production at the plant since the floods started and it can be restored only when the paint shop is functional again.

The brunt of the impact was borne by the paint shop and the engine assembly line. "The maintenance department is working round the clock to restore complete functionality of the plant. Suppliers have been contacted for the most urgent parts that are needed for maintenance,'' the statement said.

According to it, around 200 cars were at the Kurla plant on July 26, when the unexpectedly heavy downpour happened. These were shifted to a higher area. "The Fiat depots located outside Mumbai are well equipped to meet the supply of cars that have already been booked and also any extra demand of cars,'' the statement said.

The company will bear 50 per cent of the cost of spare parts and labour that are not covered by insurance, for damages caused by the floods to cars delivered to Fiat dealerships in the city between August 1 and September 30.

Three specialised engineers from Fiat would also be present at dealerships to help customers in getting their cars repaired.

(This article was published in the Business Line print edition dated August 4, 2005)

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